Yes and yes. If you follow the instructions that come with the kit, you assign one of the handsets as unit 1 and the second as unit 2. If you've done this correctly, you press the "alt" button and you can dial "1" from handset 2 (and 2 from 1) and the other handset will ring, and you can then answer the call and talk back and forth. The CD player is good if you are by yourself, but actually being able to take back and forth gives you a better idea of what an actual conversation will sound like.